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Green energy tax credits in 2026: what is left and who can buy
Many "green energy credits" changed under Public Law 119-21 (the 2025 reconciliation law). Several consumer credits ended, while the business credits that can be sold to buyers continue under their own rules. This page sorts them out in general terms.
Credits that have ended for individuals and homes
| Credit | IRS termination rule |
|---|---|
| §25C energy efficient home improvement | Not allowed for property placed in service after December 31, 2025 |
| §25D residential clean energy | Not allowed for expenditures made after December 31, 2025 |
| §30D new clean vehicle and §25E previously-owned | Not allowed for vehicles acquired after September 30, 2025 |
| §45W commercial clean vehicle | Not allowed for vehicles acquired after September 30, 2025 |
| §30C refueling property | Not allowed for property placed in service after June 30, 2026 |
| §45L new energy efficient home | Not allowed for homes acquired after June 30, 2026 |
| §179D efficient commercial buildings (a deduction) | Not allowed for property whose construction begins after June 30, 2026 |
Source: IRS FAQs on Public Law 119-21. These are claimed by the person who installs, buys or builds, and are not part of the purchased credit market.
Business credits that continue
| Credit | What it covers | On the transferable list? |
|---|---|---|
| §48E clean electricity investment | Solar, wind, storage and other qualifying facilities placed in service after 2024. Wind and solar have construction and in-service deadlines; storage does not | Yes |
| §45Y clean electricity production | Per-kWh credit for the same facilities, in place of the ITC (PTC vs ITC) | Yes |
| §45X advanced manufacturing | US-made components such as solar, battery and critical minerals | Yes |
| §45Z clean fuel production | Clean transportation fuel | Yes |
| §45Q carbon capture | Captured and sequestered or used carbon oxide | Yes |
| §45V clean hydrogen | Qualified hydrogen production | Yes |
| §48 (legacy) | Projects that began construction before 2025 | Yes |
Who can buy a transferable credit
Under §6418 an unrelated buyer can pay cash for an eligible credit and use it against its own federal income tax. The buyer has to have tax to offset: C corporations use the credit within the general business credit limit, and individuals and closely held businesses face the passive activity rules. See who qualifies and who can buy.
Where §48E fits
For most first-time buyers §48E offers the widest set of projects, and storage is outside the wind and solar termination. It also has a five-year recapture period and foreign-entity rules. Our buyer guide covers pricing, diligence and agreement terms, and the which-ITC-applies guide covers the other investment credits. Related: RECs vs tax credits.
Educational information only, not tax, legal or investment advice, and no outcome is promised. Rules and figures were checked against the cited sources on October 31, 2026; they change, so confirm with your CPA and counsel before acting. Veritas does not offer or solicit investments. See our disclaimer.
Frequently asked questions
Is the federal solar tax credit for homeowners still available in 2026?
The §25D residential clean energy credit is not allowed for expenditures made after December 31, 2025, per the IRS. Businesses that own solar may still qualify under §48E or §45Y, subject to the construction and in-service deadlines.
Which green energy tax credits can a business buy?
Credits on the IRS transferable list, including §48E, §45Y, §45X, §45Z, §45Q, §45V and legacy §48 credits, subject to each credit's own rules.
Did the 2025 law end the §48E credit?
No. It set termination dates for wind and solar facilities, but storage and other technologies continue under their own rules. Confirm deadlines in our solar and wind deadlines guide.
Can individuals buy these credits?
Yes in principle, but passive activity limits can restrict how much an individual can use. Closely held corporations face similar limits.
- IRS: FAQs on §25C, §25D and other credits under Public Law 119-21
- IRS: Clean Electricity Investment Credit (§48E)
- 26 U.S.C. §45Y, Clean electricity production credit (Cornell LII)
- 26 U.S.C. §45X, Advanced manufacturing production credit (Cornell LII)
- 26 U.S.C. §45Z, Clean fuel production credit (Cornell LII)
- 26 U.S.C. §45Q, Credit for carbon oxide sequestration (Cornell LII)
- 26 U.S.C. §45V, Credit for production of clean hydrogen (Cornell LII)
- 26 U.S.C. §6418, Transfer of certain credits (Cornell LII)
- IRS: Elective pay and transferability FAQs, Transferability (Q4-Q15)